Govt okays N25b for power projects
From Madu Onuorah, Abuja
THE Federal Government yesterday continued its search for a lasting solution to the lingering power crisis in the country.
After a series of deliberation on the issue in Abuja, the Federal Executive Council (FEC) approved contracts worth N25.3 billion for the completion of some power projects to stabilise electricity supply in the country.
This included the ratification of President Umaru Musa Yar'Adua's anticipatory approval of a total of N15.4 billion, to be spent outside this year's budget, to fund new critical transmission projects. The money will be sourced from intervention funds.
The Council also approved N14.5 billion for the upgrade of the 15-year-old College of Petroleum Studies in Kaduna, which is owned by the Nigerian National Petroleum Corporation (NNPC), and endorsed the take-over of the school by the Federal Government.
Minister of State for Information and Communications, Ikra Bilbis, along with the Minister of the Federal Capital Territory (FCT), Adamu Aliero, told reporters after the FEC meeting that "in view of the fact that the administration has put emphasis on the need for adequate power supply nationwide, the Council approved various contracts under the energy sector."
The contracts included the design, manufacture and supply of 131 units of 330kv instrument transformers awarded to Siemens Nig. Ltd for € 1,583,103 and N47,845,108.78 equivalent of N362,110,525.76 at an exchange rate of € 1 to N198.512.3 with funding from the 2009 budget and power sector intervention fund. The contract is to be completed within four months.
The FEC also awarded a contract for the manufacture and supply of 20 numerical relay testing equipment to Messrs OMICRON GMbH, Austria for N200,602,975.49 plus N46,425,702.19 for port clearing charges with six months as delivery period.
Another contract for the design, supply, installation and commissioning of a 10mw wind farm in Katsina State was given to Messrs Vergnet SA of France for N3,289.000.000 (€ 18,500,00) plus N494,020,000 at the exchange rate of € 1 to N151.08 prevailing on November 10, 2008 with 20 months as completion period.
There was also the contract for the emergency supply of blades, blade accessories and provision of manpower services for the re-blading unit GT 18 and the Diagnostic Inspection of Unit GT 13 at Afam Power Plc to Messrs Alstom Ltd for € 10,630,604.39 equivalent of N2,027,008,563.23 at an exchange rate of € 1 to N190,676.7 with five months as completion period.
The FEC gave its nod for the manufacture and supply of seven Tangent Delta/dissipation factor test equipment and training of 30 TCN engineers to Micron GMbH of Austria in the sum of €460,090.00 plus N25,870.948.34 equivalent to N11,204,472.45 at an exchange rate of €1 to N198,512.3 with five months as completion period.
Similarly, the rehabilitation and extension of Sapele 330kv switch yard in favour of AK-AY Elektrik Dis Ticaret and AK-AY Elektrik Nig Ltd for € 16,552,544.57 plus N325,232,591.81 equivalent to N3,611,116,285.25 with 15 months as completion period was approved by the Council.
Bilbis added: "Council ratified the President's anticipatory approval for the funding of new transmission projects that are critical to the transmission target but not funded under the 2009 Appropriation Bill, in the total sum of N15,408,443,976.28."
On the upgrade and take-over of the College of Petroleum Studies, Executive Secretary, Petroleum Technology Development Fund (PTDF), Muttaqha Darma, told reporters that the NNPC had hitherto used the school for the training of its management personnel. But with the take-over and upgrade, it will now cater for the entire oil and gas industry.
He said: "Before now, any (NNPC) senior management level personnel transiting to general management level must go through a course in that college. But the PTDF has been mandated to upgrade that college not to serve NNPC alone but the entire oil and gas industry so that it will become what Nigerian Institute of Policy and Strategic Studies (NIPSS) is to the Civil Service; and National War College is to the military.
"This is a college for manpower development, it will be upgraded in such a way that the capital flight out of Nigeria to other countries for training purpose will now be domiciled here. It will be upgraded to be like the one in Houston in the United States (U.S.) or the one in Pakistan."
On how the college is different from the Petroleum Training Institute (PTI), Effurun in Delta State, the PTDF chief said: "PTI was established to develop junior to middle-level manpower in the oil and gas industry as a result of directive by the Organisation of Petroleum Exporting Countries (OPEC) that all member-states should have one.
"PTDF has upgraded PTI to be at par with other world-class institutions. More than N27 billion was spent in that upgrade and more is still being spent to ensure that the equipment and other facilities are up to date"
The FEC also approved the request of the FCT for the award of consultancy services contract for the preparation of electricity master plan for phase 3 of the city to Mega Project Engineering Ltd for N146,368,267.50 with completion period of six months.
Aliero said the approval was necessary because most private developers allocated plots under the mass housing scheme in Abuja were erecting buildings in the absence of information on location and cable routes for the injection of sub-stations that would service the estates.
A bill to establish the Public Service Institute of Nigeria was also considered by the Council. When established, the institute will be a centre of excellence in learning, innovation, leadership development and a facilitator of government business.
